Abercrombie Settles Discrimination Suit

November 10, 2004 (PLANSPONSOR.com) - Retail giant
Abercrombie & Fitch has agreed to settle three
discrimination lawsuits for a total nearing $50 million,
according to a Securities and Exchange Commission (SEC)
filing.

The details of the settlement are not being disclosed as
of now, according to legal publication The Recorder. The
details will likely be released after Judge Susan Illston
of the US District Court for the Northern District of
California rules on whether or not to grant approval to the
proposed settlement. The Recorder did however state that
there will likely be some form of injunctive relief
included in the payout.

The lawsuit, covering 16 plaintiffs, stems from what
opponents of the company say are racial and gender-based
discriminatory actions with regards to the company’s hiring
policy. Attorneys representing individual plaintiffs,
advocacy groups and the Equal Employment Opportunity
Commission (EEOC) have alleged that hiring practices by
almost 700 stores have favored white male applicants,
according to The Recorder.

The lead attorney, Bill Lann Lee, a partner at Lieff
Cabraser Heimann & Bernstein, filed the racial
discrimination claim, while Jack Lee of Minami, Lew &
Tamaki filed the gender allegations. The EEOC filed claims
covering both charges. The suit has not been classified as
a class action as of yet, however.

Multiple rights groups, including the NAACP Legal
Defense and Educational Fund and Rainbow/Push Coalition,
have backed the suit.

The case is seen as setting a standard for
discrimination lawsuits, some industry analysts believe,
according to The Recorder. Because the claims span such a
broad area and not just a single form of discrimination,
some believe that this will open the door for
unconventional claims.